Suppose that a firm produces both steel and electricity. It is cheaper for this firm to produce both goods than it would be if they were produced by two separate firms. Further, as this firm increases its production levels of both products, the average cost of producing steel rises, while the average cost of producing electricity remains constant. This firm experiences:
A. economies of scope, diseconomies of scale in the production of steel and constant returns to scale in the production of electricity.
B. economies of scope, economies of scale in the production of steel and constant returns to scale in the production of electricity.
C. diseconomies of scope, economies of scale in the production of steel and constant returns to scale in the production of electricity.
D. diseconomies of scope, diseconomies of scale in the production of steel and increasing returns to scale in the production of electricity.
A. economies of scope, diseconomies of scale in the production of steel and constant returns to scale in the production of electricity.
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Which of the following is included in both the balance of trade and the balance of payments?
A) exports B) earnings on domestic assets owned by foreign residents C) international capital movements D) earnings by domestic residents on assets located abroad
Economics
A. started as a business application. B. can never be defined. C. is the study of unlimited wants but limited resources. D. has no "real world" relevance.
Economists are still puzzled why growth rates in the United States fell from 1973 to 1995.
Answer the following statement true (T) or false (F)